UPDATE: Stifel Nicolaus Reiterates Buy Rating, Lowers PT on McEwen Mining Following Los Azules Sale Delay

In a report published Wednesday, Stifel Nicolaus analyst Craig Stanley reiterated a Buy rating on

, but lowered the price target from $3.05 to $2.75. In the report, Stifel Nicolaus noted, “McEwen Mining (MUX) announced it is halting the sale process of Los Azules and will examine the potential for building the El Gallo Phase II silver project as a heap leach mine (thereby removing a potential equity overhang). As a result of delaying development of El Gallo Phase II (which more than offsets increasing production at the El Gallo Phase I heap leach gold mine), corporate production guidance has been reduced from 290,000 to 225,000 gold equivalent ounces in 2016. We are reiterating our Buy rating on the shares of McEwen Mining but are lowering our target price from $3.05 to $2.75. Our target price is derived from 1.1x our NAV of $2.50/share calculated at Stifel's gold and silver price forecasts.” McEwen Mining closed on Tuesday at $2.31.